Brown: World needs ‘global New Deal’

The world needs a “global New Deal” to haul it out of the economic crisis it faces, Prime Minister Gordon Brown of the United Kingdom said Sunday.

“We need a global New Deal — a grand bargain between the countries and continents of this world — so that the world economy can not only recover but… so the banking system can be based on… best principles,” he said, referring to the 1930s American plan to fight the Great Depression.

Brown was speaking as the leaders of Europe’s biggest economies met to try to forge a common position on the global financial crisis ahead of a major summit in London in April.

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French President Nicolas Sarkozy said the world’s response to the global financial meltdown had to be profound and long-lasting, not just tinkering around the edges.

“Europe wants to see an overhaul of the system. We all agree on that. We’re not talking about superficial measures now or transitional measures — we’re talking about structural measure, which need to be taken,” he said.

German Chancellor Angela Merkel, the host of the meeting, urged nations of the world to work together to fight the problem.